(CH.1) ETHICAL REASONING:
IMPLICATIONS FOR ACCOUNTING
QUIZ QUESTIONS AND ANSWERS WITH
SOLUTIONS 2024
(Ch.1) Ethical Reasoning: Implications for Accounting Quiz
Recommended sets
Which of the following elements does NOT make up an integral part of what is meant by "ethics"?
a. always follow the law
b. the moral point of view
c. accepted standards of behavior
d. knowing the difference between right and wrong - ANSWER a. always follow the law
Ethical relativism can best be described as:
a. a point of view that morality is relative to the norms of one's culture
b. a concept that holds that integrity should be maintained in the face of pressure by others
c. an ethical reasoning method that holds one should always act out of self-interest
d. an ethical reasoning method that holds one should always consider the effect of one's actions on
others - ANSWER a. a point of view that morality is relative to the norms of one's culture
Which of the following is true of the relationship between civility and ethics?
a. one can be both ethical and uncivil
b. one can be both civil and unethical
c. one can use others, be a bully, and be ethical
d. one can have empathy and caring for others and be uncivil towards them - ANSWER b. one can be
both civil and unethical
Janice is a staff accountant in the accounting firm of Obama and Biden. She is assigned to the audit of
HealthCare Associates. On her first day, Janice noticed that the accounting manager of the client took
money out of the petty cash fund and put it in his pocket. The best course of action for Janice to take is:
a. inform her immediate supervisor of what she observed
b. tell another staff accountant who is a friend and ask for her advice
c. tell the superior of the accounting manager what she has observed
d. ignore the situation because Janice doesn't know why the manager pocketed the money - ANSWER a.
inform her immediate supervisor of what she observed
When applying Utilitarianism to judge actions, what is the only thing that matters?
a. motives
b. fairness
, c. consequences
d. rights - ANSWER c. consequences
Greatest good for the greatest number of people is the theory of:
a. utilitarianism
b. rights
c. justice
d. deontology - ANSWER a. utilitarianism
The biggest problem in applying virtue theory to decision making is:
a. it can be difficult to determine virtues to distinguish equals from unequal claims in decision making
b. conflicts between virtues may make decision making more difficult
c. it relies on moral absolutes in decision making
d. it can be difficult to identify virtues - ANSWER b. conflicts between virtues may make decision making
more difficult
The Independence Principle of the AICPA Code applies to:
a. all accountants and auditors.
b. all CPAs who render attestation services
c. all members of the audit committee
d. all CPAs regardless of professional services - ANSWER b. all CPAs who render attestation services
Ty is a rising star at Texas State Country & Western Stores. He is the controller of the company. His wife,
Rosie, is the lead auditor of the CPA firm that examines Country & Western's financial statements and
issues an audit opinion. Rosie would violate what ethical standard if she is allowed to conduct the audit?
a. independence
b. responsibility
c. integrity
d. due care - ANSWER a. independence
Internal rewards of accounting practice include:
a. wealth and prestige
b. success and power
c. integrity and excellence
d. achievement and notoriety - ANSWER c. integrity and excellence
A difficult choice between two moral principles that are in conflict with one another is known as a/an
a. ethical relativism
b. situational ethics
c. ethical dilemma
d. conflict ethics - ANSWER c. ethical dilemma
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